Verizon Communications Inc. (NYSE: VZ) seems to be disappointed with the data breach issue involving Yahoo! Inc. The mentioned data breach woe has affected over 500 million accounts back in 2014.
However, recent reports suggest that the telecommunication giant may want to renegotiate the terms of the acquisition deal. During the early part of the month of July this year, the telecom company has agreed to purchase Yahoo for an amount of $4.8 billion. Verizon anticipated that doing this would add value to its business portfolio.
The officials of Verizon stated in a recent meeting in Washington that Yahoo’s data breach is a reasonable event that should allow changes when it comes to the terms of the acquisition agreement. According to Crain Silliman, the Verizon General Council who has been handling the situation, Yahoo should be able to prove that this data breach issue was not materialistic.
Some reliable sources asserted that the telecom company was not aware about the prior data breach when the buyout deal was signed. Verizon was scheduled to accomplish the acquisition of the Internet business of Yahoo! Inc. by the end of the month of March. Moreover, a spokesman of Verizon announced that the company planned to push through with the integration process as it was confident about the value of Yahoo.
In the month of September, Yahoo revealed that hackers have extracted names, email addresses, date of births, telephone numbers, as well as encrypted passwords during the said data breach. This data breach issue was known back in July, but Yahoo did not inform Verizon until the month of September.
The telecommunication titan is still interested in the Internet business of Yahoo. Verizon Chief Executive Officer Mr. Lowell McAdam noted that he does not intend to walk away from the acquisition deal with Yahoo.
Yet, Mr. McAdam did not provide any statements regarding his plans to alter the terms of the deal. Furthermore, the Verizon CEO still regards Yahoo as “a real value asset” as he said that the corporation is still assessing any significant effect on the business.
According to market analysts, Verizon might not go for changes in the contract as Yahoo has also obtained bids for its Internet segment from other possible acquirers. Since a lot of other buyers are currently evaluating the situation, the telecom company may carry on with the existing deal.
As of 10:40 AM GMT -4, the stock of Verizon is changing hands at $50.55, up by 0.52 percent or 0.26 points. Meanwhile, the YHOO stock is trading at $41.90, up by 0.68 percent or 0.28 points.